Series 7 Munis - Definitions

Municipal Finance Definitions for Series 7 Exam
State Governements, Legally Constituted Taxing Authorities and Territorial US Possessions
Maturity Structures
Term, Serial and Balloon
Term Maturity
All principal matures at a single date in the future. Quoted by price like corporates. Called dollar bonds.
Serial Maturity
Bonds within an issue mature on different dates according to a predetermined schedule. Quoted on YTM
Balloon Maturity
Issuer pays part of a bonds maturity before the final maturity date. Largest portion paid at maturity.
Overlapping Debt
Several taxing authorities that draw from the same taxpayers can issue debt 2 or more issuers tax the same property
Coterminous Debt
2 or more taxing agencies that share map and can issue debt seperately. Usually occurs in property taxes
Double-Barreled Bonds
Revs with GO features. Interest and principal paid from earnings. Bonds also backed by the taxing power of municipality. Rated and Traded like GOs